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Home  » Business » Markets end lower on rising growth concerns

Markets end lower on rising growth concerns

December 23, 2011 16:58 IST
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Indian stock markets ended lower amid a volatile trading session Friday, snapping two-day gains, on rising concerns that India's growth is likely to be lower than the central bank's revised forecast of 7.6% for 2011-12.

Markets were also weighed down by losses in index heavyweights Reliance Industries and Infosys which ended down 1.1% and 0.7%, respectively.

The 30-share Sensex ended at 15,739 down 75 points or 0.5% and the 50-share Nifty ended at 4,714 down 20 points or 0.4%.

The Reserve Bank of India governor Thursday said that India's GDP will be below 7.6%.

In its second quarter review of monetary policy 2011-12 the central bank had revised the baseline projection of GDP growth for 2011-12 downwards to 7.6% from 8% earlier.

Meanwhile, brokerage CLSA cut its forecast for Indian GDP growth to 6.7% for the current fiscal year ending March from its earlier projection of 7.3%, citing cyclical deceleration caused by high interest rates, policy inertia and the adverse impact of global headwinds.

On the global front, US markets ended 1% higher yesterday after stronger than expected jobless claims. European markets like France's CAC, Germany's DAX and Britain's FTSE were up 0.5-1% while Asian markets closed 1-2%.

Back home, NTPC topped the selling list among largecaps, sloping down 3.27% to Rs 158.

Bank shares ended lower on profit booking after the central bank's financial stability report Thursday said that the slowing domestic demand and strong global headwinds may further increase loan defaults and funding costs of the banking sector. HDFC Bank lost 1.2%, SBI ended 0.7% down while ICICI Bank closed 1.2% lower.

Index heavyweight Reliance Industries submerged 1% to Rs 746. ONGC too dropped by nearly 1%.

Telecom shares too witnessed selling pressure on reports that the telecom ministry has asked service providers to discontinue their 3G roaming agreements, which will lead to a significant

loss of revenues to the government. Bharti Airtel down 1.49% and Idea Cellular slipped 3.5%.

From other Sensex losers, JP Associates, DLF, Tata Steel, Jindal Steel, Tata Power and Bajaj Auto fell between 1-2%.

Amongst other shares, MBL Infra jumped 3% to Rs 105 after the company announced that is has secured fresh orders aggregating to Rs 315.79 cr from the various government departments such as NHAI, Railways, Haryana Urban Development Authority (HUDA) and Public Works Department (PWD), Haryana.

Suzlon Energy gained 2% at Rs 19 on the Bombay Stock Exchange (BSE) after the company announced that it has secured orders worth Rs 935 crore.

Hindustan Motors jumped 3.7% at Rs 8.75. The company entered into Bangladesh markets for producing taxis and made JV with local group for assembly unit near Dhaka, reports CNBC-TV18 quoting Business Standard.

Monnet Ispat rallied 1.5% to Rs 365 after its board approved the buyback of its own shares at a maximum price of Rs 500 a share.

ABB soared 3.5% to Rs 590 after ABB Group bagged an order worth more than Rs 4,000 crore from the state-owned company Power Grid Corporation to supply a transmission system with the highest converter capacity ever built, the Swiss engineering group said on Thursday.

Tilaknagar Industries ended higher by 8% to Rs 35.55 on reports that the breweries and distillers maker has won a legal battle to retain its flagship brand Mansion House Brandy. The Bombay High Court dismissed a suit by Dutch spirits company UTO staking claim to the trademark.

Punj Lloyd surged by 2% at Rs 41 after the company announced that is has ventured into Kenya for Loruk-Barpelo road project.

Stone India rallied 8% to Rs 28 after it bagged an order from ASEAN market worth $1.3 million for Freight car upgradation, its largest export order till date.

The BSE Mid-cap Index ended marginally up at 0.1% while the Small-cap index gained 1%.

The overall market breadth ended positive as 1,525 stocks are advancing while 1,194 are declining.

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